In this book leading European economists examine the current status of social pacts and their future. Particular focus is placed on the role of trade unions, and the positive role they can play for economic and social stability by agreeing to set wages on the basis of a target rate of inflation....

The paper constructs an asymmetric information model to investigate the efficiency and equity cases for government mandated benefits. A mandate can improve workers? insurance, and may also redistribute in favor of more "deserving" workers. The risk is that it may also reduce output. The more...

There are basically three stories about the globalisation-welfare state nexus. The first story argues that globalisation is the cause of the chronic crisis of the welfare state. As national economies open to the international market, governments are forced to adapt to the imperatives of global...

There are many qualms about subjective indicators, and some people believe that social policy should better not use them. This paper consists of a review of these objections. It is argued that policy makers need subjective indicators for the following reasons: 1. Social policy is never limited...

This paper uses a two country trade and geography model of monopolistic competition to study the effects of wage policies and social policies on the location of industry. It is first shown that a union wage push in one of two otherwise identical countries induces a relocation of firms which...